(a) Prior to the effective date of retirement, but not thereafter, a member may elect to receive a firefighter's pension as an option 1 pension payable for life or may elect to receive the actuarial equivalent of option 1 pension in a reduced pension and nominate a beneficiary, in accordance with the provisions of option 2, 3, 4 or 5 as set forth in this section. If a member does not elect an option, the pension shall be paid under option 1.
(1) Option 1. Under option 1, if a retirant dies before receiving in pension payments an aggregate amount equal to the retiree's accumulated contributions account at the time of retirement, the difference between the accumulated contributions account and the aggregate amount of pension payments received shall be paid from the pension fund to that person as shall have been nominated by written designation duly executed and filed with the board. If there is no designated person surviving the retirant, the difference, if any, shall be paid to the retirant's legal representative.
(2) Option 2. Under option 2, upon the death of a retirant, the reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement.
(3) Option 3. Under option 3, upon the death of a retirant, one-half of the reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement.
(4) Option 4. Under option 4, upon the death of a retirant, the reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement. If the nominated beneficiary dies first, the retirant shall, upon the death of the nominated beneficiary, begin to receive a pension equal to the option 1 pension which would have been payable had no option been elected.
(5) Option 5. Under option 5, upon the death of a retirant, one-half of the reduced pension shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement. If the nominated beneficiary dies first, the retirant shall, upon the death of the nominated beneficiary, begin to receive a pension equal to the option 1 pension which would have been payable had no option been elected.
(b) Notwithstanding any provision to the contrary, the pension fund shall pay all benefits in accordance with a good faith interpretation of the requirements of § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of § 414(d) of the Internal Revenue Code.
(1957 Rev. Ords., § 2.1118; 1992 Code, § 35-98) (Ord. 96-87, passed 11-16-1987; Ord. 110-90, passed 12-3-1990; Ord. 118-16, passed 12-20-2016)